the asset management arm of blackstone has $550 million in debt. that is the latest from the fox business network. adam: president obama and congressional leaders are set to meet in 20 minutes in a last-ditch effort to work out a fiscal cliff deal but without a deal the defense department can expect $500 billion in cuts. how will this affect the nation's defense contracts? >> the pentagon will face $2 billion over nine years, that works out to $55 billion year cut starting in 2013. the army, navy, air force, marines and coast guard take equal, according to one military analyst who says the impact of the military is, quote, very serious. >> the pentagon and departments are in financial trouble because there has already been a 4 ebullient dollar cut. that is being applied, to take another cut on top of that is devastating. >> it is not just the military itself that will take a hit. defense contractors, private companies that work for the pentagon. one democratic congressman in virginia whose district may be hit hardest says it could mean layoffs. >>